Town halls 'too hasty' over council tax bankruptcies

TOWN halls are too quick to resort to court action against council tax defaulters, say MPs.

More than 1.2 million people received a court summons last year after falling behind with payments in 170 of the 370 local authority areas in England and Wales. Bailiffs also called on nearly 600,000 non-payers, data showed, with the councils filing for bankruptcy against 1,706 people.

The figures, obtained by the Liberal Democrats, were for fewer than half the town halls, so the overall level of legal action is likely to be at least double. Lib-Dem local government spokeswoman Julia Goldsworthy said: "Overstretched families are already struggling to meet their mortgage repayments but this survey shows that failing to pay council tax can have just as devastating an effect on householders.

"Just as lenders are being asked to reduce repossessions, public bodies should do everything they can to ensure that bankruptcy is avoided where possible."

The Local Government Association emphasised that only one per cent of cases reached court with bankruptcy orders a last resort. It added that councils usually filed for bankruptcy only against people owing more than £750.